Years ago I called AI the greatest human invention since fire, electricity, and the internal combustion engine… All the way down the line.
For traders, it’s a force multiplier. And you can even step in front of the AI spending spree…
Who gets paid when AI goes to work?
Check out my win/win AI trade plan
Table of Contents
The Big Picture
Now, I’ve been talking about this since January when I first started running OpenClaw and experimenting with Hermes. These are local AI agents running compute locally.
What I love about AI for trading is that it’s not just for idea generation. You can feed in your trade journals, trade records, and chart patterns, and use your AI agent as a personal assistant.
So, your trade journal becomes a queryable database. You can ask your AI to identify the setups where you win (or lose) the most. You can zero in on your best times of day versus when you overtrade. Or, the market conditions during your best weeks. You can ask your AI agent to identify patterns in your trading that you don’t even see.
The same goes for chart patterns. You can train your AI on your personal, annotated charts. You can use it to identify specific patterns that have worked for you in different markets. You can literally create a feedback loop around your edge.
The Collab That Sealed the Deal
On Monday, we got the news we’ve been expecting: a partnership deal between Nvidia Corporation (NASDAQ: NVDA) and Arm Holdings plc (NASDAQ: ARM).
Both Nvidia and Arm teased it last week with identical posts here and here. It’s like they were letting you know that something was coming.
What’s cool about this is that it just continues Nvidia’s domination in the AI space. The partnership means they’re creating new laptops to run agentic AI, from the bare metal up. It includes laptops from Microsoft (NASDAQ: MSFT), Dell (NASDAQ: DELL), ASUS (TWSE), and Lenovo (HKEX). Obviously, there are options. You could get one of the little Nvidia DGX boxes, or build a PC.
But this continues to prove that AI agents are the future. If you’re not running one, start. Start somewhere.
My Take
I run local models. Plus, I burn up tokens on the API. So, I’ve got my OpenClaw burning tokens like crazy and it’s worth every penny.
If you’re worried about giving your innermost thoughts or trading records to an AI, I get it. That’s why I run local models. I control all my data, my private journals, and records. I dump it into the local model and it gets processed into an Obsidian database that I can query. My data stays safe.
Watchlist
My favorite part of the Nvidia and Arm story is that it includes manufacturers like HP Inc (NYSE: HPQ) building Windows laptops to compete with Apple (NASDAQ: AAPL).
HPQ, 6-months, daily candle, multiweek, multimonth breakout, solid AI news catalyst
Now, all my hardware is Apple. I’m bullish on Apple because its memory architecture works so well for AI.
But as a hardcore capitalist, you love to see this because it drives further innovation. Apple’s going to want to stay ahead. Other competitors are going to want to get into this space. It’s just a perfect intersection.
We’ve got the software. Now we’re getting the hardware for consumers. And the models just continue to get better with local models coming out every day.
On My Radar
- The Purchasing Manager’s Index (PMI) released on Monday signaled the strongest factory sector expansion since May 2022.
- More big data: Job Openings and Labor Turnover Survey (JOLTS) released yesterday.
- What a bummer! Looks like the post short and distort dip buy might be a thing of the past.
- More on getting started with your own AI agent on the Sunday Market Brief. Be sure to subscribe and show up with your questions every Sunday.